Short Term Loans for Businesses

Lenders usually offer short term loans for businesses for a maximum of about three years. If you need a business loan that you want to repay over a longer timeframe, it's best to look at other loan products. If this applies to you, there are plenty of other great finance options out there for businesses. Get in touch, and we'll talk you through what's out there and the loans that will better fit your company's needs.

Short-term business loans can be very brief in length – if you need to, you can borrow for just a few weeks. In these cases, you'll usually use this type of finance if you don't have the working capital you need to make payments or run your business, but you're sure you've got good revenue coming in, in the short term. The loan effectively tides you over until you've got that income. 

Lenders are adaptive and can offer very short term loans for businesses. We can arrange this for you if you need capital for a few weeks or even a few days. 

Very short-term business finance (a few weeks or less) is usually helpful if you have a gap in capital or funding when income and outgoings don't match, but you will have the revenue to pay off the loan quickly. We can broker short-term finance and complete the process in a couple of days if you need to raise capital quickly. 

If you want a fast business loan, you are usually against the clock to get funding quickly. There are lots of different reasons why you might need a short-term business loan quickly. For example, your business might have an unexpected invoice to pay, you might need to make an investment, or you've had a sudden drop in revenue. You might also have a business opportunity you need to finance, or you've encountered a problem you need capital to solve.  

Approaching lots of different lenders to explain your situation to see what they will offer you can take more time than you have. You'll need to spend time submitting lots of documents to multiple lenders and explaining your situation. When you've got loan offers, you'll need to try to work out the difference between them, which isn't always as easy as you'd think. We always advise getting multiple offers wherever possible and not jumping at the first lender to offer finance just because you need capital quickly - you might not get the best deal available. 

If you need a short-term business loan quickly, the best way to make it happen is to work with a broker. We have access to the whole market and can do the admin legwork for you, delivering different offers in less than 24 hours. We can complete loans in just a couple of days and will help you with the application process to make everything happen as quickly as possible. 

This type of finance is a brilliant tool for businesses. You can use it in lots of different ways, and they're also available if your business is low on revenue for a few weeks or months. 

When it comes to short-term business loans, here's some useful information:

• Don't try and outthink your lender. If you're experiencing a low-revenue period, it doesn't mean you won't be able to borrow. Don't hide facts or omit details. Be aware that lenders want to see the whole picture. Businesses have natural dips in income, and lenders are open to financing these gaps. Tell us as clearly as possible about what's going on in your business, and we'll advise you on what finance is available
• To get a short-term loan, you must show that you have a strong business. A good credit score will make everything easier. Borrowing is more straightforward if you need liquidity to fuel growth than if you're short on cash. Lenders will want to see past financials and projected income you can support with facts. Expect to need to show details of your client base, future income, trading history and so on. Having solid accounts is essential
• You can get a short-term business loan even if you don't have a long trading history. However, you'll need to show your track record and accounts. Lenders will look carefully at your past financials and future revenue projections if you haven't been trading long. Your experience, track record in business, or skills will also play a part if they give lenders context into how successful you're likely to be in business. You'll need to provide supporting documentation, and we can help you understand what you'll need to show as part of the application process
• You need a successful business to get a short-term business loan. You can't get this type of finance to save a failing business or if you face financial hardship. Lenders are open to financing gaps in revenue, but only if the broader success of your company supports this
• Short-term loans aren't only available to big businesses. They're a great finance product for small and medium enterprises too. As long as your financials support a loan, lending is likely to be a possibility. Think of them as a great tool to help you take your business to the next level or to ride out short periods of low income 
• We can broker everything from simple to more complex short-term business loans, but a plan is vital. If you're experiencing a drop in revenue, it's not enough to tell lenders this and expect a loan to tide you over until your income picks up. They will want to know how the funds will be used in the business, what outcome they will give and how finance will support the future success of your company. Lenders usually put you in a lower-risk category if you want a short-term loan to finance growth and there's capital in your business. However, lenders will still need to see a good plan and understand how the loan will support the financial success of your business
• You'll also need to document that you have enough revenue to make monthly loan repayments. If you can't prove that you have enough capital to run the business, repay the loan and still have a margin, you will not be able to borrow.